Generic Engineering Construction Intrinsic Value

GENCON • Realty
Current Stock Price
₹40.99
Primary Intrinsic Value
₹18.24
Market Cap
₹118.9 Cr
+41.4% Upside
Median Value
₹57.97
Value Range
₹12 - ₹98
Assessment
Trading Below Calculated Value
Safety Margin
29.3%

GENCON Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹18.24 ₹14.59 - ₹21.89 -55.5% EPS: ₹1.52, Sector P/E: 12x
Book Value Method asset ₹98.28 ₹88.45 - ₹108.11 +139.8% Book Value/Share: ₹98.28, P/B: 1.0x
Revenue Multiple Method revenue ₹70.62 ₹63.56 - ₹77.68 +72.3% Revenue/Share: ₹88.28, P/S: 0.8x
EBITDA Multiple Method earnings ₹81.98 ₹73.78 - ₹90.18 +100.0% EBITDA: ₹40.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹42.16 ₹33.73 - ₹50.59 +2.9% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹12.30 ₹11.07 - ₹13.53 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹12.52 ₹11.27 - ₹13.77 -69.5% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹57.97 ₹52.17 - ₹63.77 +41.4% EPS: ₹1.52, BVPS: ₹98.28
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

GENCON Intrinsic Value Analysis

What is the intrinsic value of GENCON?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Generic Engineering Construction (GENCON) is ₹57.97 (median value). With the current market price of ₹40.99, this represents a +41.4% variance from our estimated fair value.

The valuation range spans from ₹12.30 to ₹98.28, indicating ₹12.30 - ₹98.28.

Is GENCON undervalued or overvalued?

Based on our multi-method analysis, Generic Engineering Construction (GENCON) appears to be trading below calculated value by approximately 41.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 40.75 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 2.8% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 13.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.56x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹9 Cr ₹9 Cr Positive Free Cash Flow 8/10
March 2024 ₹6 Cr ₹3 Cr Positive Free Cash Flow 7/10